Chongqing – January 2022

Residential
MARKET
IN
MINUTES
Savills Research

Savills team
Please contact
us for further
information

RESEARCH
James Macdonald
Senior Director
China
+8621 6391 6688

Transaction prices drop james.macdonald@

savills.com.cn

Main urban area saw transaction prices decrease to RMB14,651 psm QoQ. Sophy Pan
Senior Manager
• Chongqing’s supply of first-hand commodity housing in • On 31 December 2021, Chongqing’s Housing and Urban Western China
the main urban areas fell 54% to 2.0 million sqm QoQ in Rural Construction Commission announced that effective +8628 6737 3737
sophy.pan@
Q4/2021. 1 January 2022, the threshold of real estate tax on new
savills.com.cn
high-end housing purchased by individuals in the main
• The transaction volume of first-hand commodity housing urban areas will be adjusted from RMB22,106 psm in 2021 to
dropped 52.3% to 1.7 million sqm. RMB25,820 psm. CENTRAL MANAGMENT
Eric Wo
• Transaction prices of first-hand housing decreased 1.5% to Managing Director
RMB14,651 psm. Western China
 +8628 8658 7828
• A total of 28 lands were auctioned in the main urban areas,
with 23 land plots successfully transacted while five failed to
“Chongqing has recently eric.wo@savills.com.cn

be auctioned. strengthened the Savills plc

Savills is a leading global real

• Chongqing completed a real estate development investment management of the real estate service provider listed on
the London Stock Exchange. The
company established in 1855, has
of RMB395.8 billion, down 0.4% YoY in the first 11 months
of 2021.
estate market, with relevant a rich heritage with unrivalled
growth. It is a company that leads
rather than follows, and now has
 housing regulation policies over 600 offices and associates
throughout the Americas, Europe,
• In terms of high-end residential properties, the entry of Asia Pacific, Africa and the Middle

Hongkong Land’s residential project Qiyuan increased the introduced to promote the East. This report is for general
informative purposes only. It may
not be published, reproduced or
supply of high-end residential units in Jiangbei District,
which is close to Guanyinqiao Core Business District (CBD)
market’s healthy and stable quoted in part or in whole, nor may
it be used as a basis for any
contract, prospectus, agreement
and targets residential customers seeking better living
conditions.
development as well as or other document without prior
consent. Whilst every effort has
been made to ensure its accuracy,

 prevent risks and standardise Savills accepts no liability

whatsoever for any direct or
consequential loss arising from its

market behaviors.” use. The content is strictly

copyright and reproduction of the
whole or part of it in any form is
The main urban area of Chongqing includes: Yuzhong, Jiangbei, Yubei, Beibei, Jiulongpo, prohibited without written
Shapingba, Dadukou, Nan’an and Banan Districts. SOPHY PAN, SAVILLS RESEARCH permission from Savills Research.

savills.com.cn/research 1
 Residential

MARKET OVERVIEW is 20% for the first house purchased by a

GRAPH 1: Real Estate Investment And YoY Growth, worker’s family and 40% for the second house
Chongqing completed a real estate
2005 to 01-11/2021
development investment of RMB395.8 billion, purchased by a worker’s family.
Real estate investment (LHS) YoY growth (RHS)
500 50%
down 0.4% YoY in the first 11 months of 2021.
The supply of first-hand commodity housing LAND MARKET
in the main urban areas of Chongqing fell The enthusiasm of various real estate
400 40%
54% to 2.0 million sqm QoQ in Q4/2021. The enterprises to participate in the third
transaction volume of first-hand commodity centralised land auction decreased
300 30% significantly, with state-owned enterprises,
housing in the main urban areas dropped
52.3% to 1.7 million sqm. Transaction prices Chinese central state-owned enterprises and
billion RMB

200 20% of first-hand housing in the main urban areas
decreased 1.5% to RMB14,651 sqm in Q4/2021.
100 10% In terms of high-end residential properties,
the entry of Hongkong Land’s residential
0 0% project Qiyuan increased the supply of high-
end residential units in Jiangbei District,
- -10% which is close to Guanyinqiao CBD and
targets residential customers seeking better
1-11'/2021
2010
2011
2012
head real estate enterprises still the main
source of land transactions. 28 lands were
auctioned in the main urban areas, and 23
lands were sold, with a total of 3387.4 mu, a
building volume of about 4,404,600 sqm, a
total transaction amount of RMB27.6 billion,
and an average floor price of RMB6,818 psm.
Among them, the I6-1-1/03 plot of Dashiiba

2016

2018
2019
2005
2006
2007
2008
2009

2013
2014
2015

2017

2020

living conditions. Group I in Jiangbei District entered the

POLICY
Source Savills Research
Chongqing has introduced policies related
to the property tax threshold for high-end
housing and the use of housing provident
funds for the second suite to further regulate
GRAPH 2: Residential Supply, Volume And Price the industry’s behavior and guide the stable
In The Main Urban Area, Q1/2017 to Q4/2021 and healthy development of the residential
Supply volume (LHS) Transaction volume (LHS) Average price (RHS)
market. On 31 December 2021, Chongqing’s
9 18,000 Housing and Urban Rural Construction
Commission announced that effective 1
8 16,000 January 2022, the threshold of the real estate
7 14,000 tax on new high-end housing purchased by
individuals in the main urban areas will be
6 12,000 adjusted from RMB22,106 psm in 2021 to
RMB per sq m
lottery stage and was finally won by China
Overseas with a floor price of RMB12,426
psm and a premium rate of 15%. Meanwhile,
the most in demand plot which is the Diance
village plot in Guanyinqiao requires the
bidder to hold a commercial project with a
total floor area of more than 100,000 sqm
and an operation time of not less than 15
years. It is also necessary for the bidder to
have the cooperation experience with LVMH,
RICHEMONT, KERING and HERMES, and
introduce at least 10 clothing, leather goods
and jewellery brands of the said groups into
the projects it operates. On the other hand,
the entry of Hongkong Land’s commercial

RMB25,820 psm. project Qiyuan, Times Center, and other

million sq m

5 10,000
projects will also bring an upgrade to
4 8,000 The Municipal Housing Provident Fund Guanyinqiao Business District.
3 6,000 Administration Centre also issued the official
notice of the city’s policy on the use of MARKET OUTLOOK
2 4,000 housing provident funds for the second suite. Chongqing has recently strengthened the
1 2,000 In terms of the loan amount, the maximum management of the real estate market.
amount of personal housing loan in housing Relevant housing policies have been
0 0 provident fund is RMB400,000, the personal introduced one after another to prevent risks
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4

loan amount is 25 times the balance of the in the real estate sector and regulate market
2017 2018 2019 2020 2021 housing provident fund account, and the behavior. Thus, more relevant housing
maximum limit is RMB 800,000 for couples policies are expected to be introduced
Source Savills Research
participating in the loan. In terms of the to contribute to the healthy and stable
down payment, the minimum down payment development of the real estate market.

GRAPH 3: High-End Residential Price Index, TABLE 1: Chongqing New Residential Property, Q4/2021
Q1/2017 to Q4/2021
Price Index(LHS) Average Price(RHS)
135 28,000 PRICE
PROJECT NAME AREA DEVELOPER
(RMB/SQ M)
130 26,000

125 24,000 Yuhuyihao 13,670 Jiulongpo CSCEC

RMB per sq m

120 22,000
Q1/2013 = 100

Xingguangtiankongzhicheng 19,570 Shapingba Vanke

115 20,000

110 18,000
Lugulinyu 14,750 Nanan Poly
105 16,000

100 14,000 Jinyue 12,420 Banan CCC

Q4

Q4

Q4

Q4

Q4
Q1
Q2
Q3

Q1
Q2
Q3

Q1
Q2
Q3

Q1
Q2
Q3

Q1
Q2
Q3

2017 2018 2019 2020 2021

Source Savills Research Source Savills Research

savills.com.cn/research 2